China’s Midea in Talks to Buy Toshiba’s White Goods Business, After Haier Bought GE

Photo: Midea Group Co. headquarters in south China's Guangdong province

Chinese appliance manufacturer Midea Group Co. is said to be in talks to buy Japan-based Toshiba Corp.'s appliance business, Nikkei reported on Monday.

Toshiba is likely to sell a majority stake in its Toshiba Lifestyle Products & Services subsidiary for tens of billions of yen (several 100 millions USD), according to the sources. The deal, if completed, marks another significant overseas acquisition by Chinese electrical appliance company after China's Haier bought GE Appliances for $5.4 billion earlier this year.

Struck by the global financial crisis in 2008, Japanese home appliances industry has endured a strategic share shrink in the global market. And Toshiba is expected to report a fifth straight year of losses in the year ending this month, especially after a sweeping accounting scandal.

It is reported that Midea and Toshiba have come to their final negotiation on the sale. Details have not yet been published.